Thursday, March 5, 2009

Robert Hsu and GENZ

Another 30% loss for Robert Hsu and his $3.000/year paying subscribers of Asia Pacific Edge, Your complete guide to emerging market profits....

The clown suggested to buy GENZ on September 10th 2008 at $79.75, just 5% below GENZ's max price in its history. Please nota that now (at $54) GENZ is trading at 36 times its earning...

New Buy: Genzyme Corporation
Now my second trade is in a sector that we haven't had a lot of exposure to as of late -- biotech. Recently, though, the biotech sector has been showing significant strength, and it's a booming industry in Asia, as governments like China, Singapore and Taiwan sponsor biotech research and focus on advancements in scientific development. So what better way to take advantage of this growing trend than to invest in one of the world's leading biotechnology companies?
Founded in 1981, Genzyme Corporation (NASDAQ:
GENZ) has grown to become an international company with 10,000 employees in locations spanning the globe. It has six business segments -- Renal, Therapeutics, Transplant, Biosurgery, Genetics and Oncology -- that serve patients in over 90 countries.
In fact, Genzyme has a strong presence in [...].
Strong Financials
Supporting Genzyme is its strong financials, as the company has grown at a strong rate -- more than 20% -- for more than a decade. In 2007, revenue rose 20% to $3.8 billion from the year before. Earnings soared 25% to $3.47 per share last year, and all of its six business units posted double-digit year-over-year growth. Its cash flow is particularly strong -- the company generated more than $1.3 billion in cash in 2007, a 30% increase over the $1 billion achieved in 2006.
Genzyme is very well positioned to continue this growth rate in the next four years and beyond. In fact, the company is expecting earnings growth by a compound average rate of 20% until 2011. So by 2001 [???], Genzyme's earnings are expected to reach $7 per share. And annual revenue is expected to reach almost $7 billion by 2012.

Strong earnings and a solid place in the biotech market will likely drive Genzyme's stock higher in the coming months and years. So I want you to buy GENZ under $80. I'm targeting the stock to reach $100 in the next six to eight months, which would give us a nice 25% gain.

September 17th 2008
Buy under $80

September 24th 2008
Genzyme Corporation (NASDAQ: GENZ) said this week that it expects regulators to give their final decision on plans to increase production of the drug Myozyme by November 29. Myozyme treats the genetic disorder Pompe disease, which causes muscle impairment. As we have discussed before, GENZ's competitive edge is that it produces generic versions of much-needed drugs, and I think that if the increase in Myozyme production is approved, it will add nicely to the company's bottom line.
Also contributing to GENZ's bottom line is a new research facility that it just opened in Massachusetts. This will help propel the company's work forward. Continue to buy GENZ on dips under $80.

October 1st 2008
Buy under $80

October 15th 2008
Genzyme Corporation (NASDAQ: GENZ) will announce its third-quarter earnings next Wednesday. Analysts are expecting $1 per share earnings from the company this quarter, and I look for Genzyme to meet those expectations. Buy GENZ under $75.

October 22nd 2008
Genzyme Corporation (NASDAQ: GENZ) announced its third-quarter earnings this morning. GENZ reported a 25% drop in profit compared to the same quarter last year. The company said that while it had a 21% increase in revenues, this profit was negated by a one-time charge for the rights to PTC124, a genetic disease drug.
GAAP GENZ income came in at $119.6 million, or 42 cents per share, including a one-time $100 million licensing fee for a new drug PTC124. . Non-GAAP net income for the quarter increased to $289.8 million, or $1.04 per share, from $241.3 million in the year-ago quarter. For 2009, the company looks for non-GAAP earnings to increase to approximately $4.70 per share. And it also expects to still have 20% compound average non-GAAP earnings growth from 2006 to 2011. I'm pleased with these strong results, and I expect GENZ shares to outperform the broad market going forward. Buy GENZ under $75.

October 29th to November 12th
Buy under $75

November 19th

November 26th
Genzyme Corporation (NASDAQ: GENZ) announced that it plans to develop research and manufacturing plants in India to treat rare diseases in the country. So in the next year, the company will launch more products, bring its current products to India, and increase its workforce. This will cut the company's R&D cost significantly; a smart move in this tough economic environment. Buy GENZ under $75.

December 3rd
Genzyme Corporation (NASDAQ: GENZ) has presented its leukemia drug, Clolar, to the Food and Drug Administration (FDA) for approval as an initial treatment for adults with acute myeloid leukemia. The drug has already been approved to treat a form of leukemia, acute lymphoblastic, in patients between the ages of one and 21 years old and who have had at least two prior treatments.
If the FDA grants priority review as Genzyme requested, the FDA would review the drug application within six months. That means the company could have a decision in the first half of 2009.
In addition, Genzyme, is also developing the drug for other forms of leukemia, which could eventually drive peak annual sales to $600 million. Buy GENZ under $75.

December 10th
Genzyme Corporation (NASDAQ: GENZ) received unanimous backing by a U.S. advisory panel for its Synvisc-One, a drug to treat knee pain caused by osteoarthritis. Since the FDA typically approves products that win panel endorsements, the outlook for this drug is positive. This development is good for GENZ, and I expect this drug to add nicely to its bottom line. Buy GENZ under $75.

December 17th
Genzyme Corporation (NASDAQ: GENZ) announced on Tuesday that the U.S. Food and Drug Administration (FDA) had approved its Mozobil drug, which is used for stem cell transplantation in patients with two blood cancers non-Hodgkin's lymphoma and multiple myeloma. And since Mozobil treats these two rare conditions, the FDA also granted the treatment with orphan drug status. The designation is used to encourage the development of treatments for rare conditions or diseases and it gives the company seven years of marketing exclusivity before a similar drug can be approved.
With the approval, the company believes that Mozobil can achieve eventual peak annual sales of $400 million. In addition, Genzyme expects European approval of the drug in the second half of 2009, and it is also seeking approval in Australia and Brazil. In the end the company plans to have approval applications in up to 60 countries.
This approval is just another example of Genzyme's ability to produce treatments for rare disorders, and its efforts to extend its reach into markets around the globe. And after the company announced the approval, the stock popped nearly 8% from Monday's close to Tuesday's close. Continue to buy GENZ under $75.

January 7th 2009
Genzyme Corporation (NASDAQ: GENZ) shares are down a bit in the past few days. But biotech stocks remain one of the safest investments right now. And Genzyme is an excellent stock to own -- it has new drugs and a strong pipeline, which should sustain the company's growth in the years to come. Continue to buy GENZ under $75.

January 14th
Genzyme Corporation (NASDAQ: GENZ) announced this week that its fourth-quarter revenue rose 13% to $1.17 billion, and its 2008 full-year revenue jumped 21% to $4.6 billion. These figures mean that Genzyme is on track to meet its goal of 20% compound average non-GAAP earnings growth from 2006 through 2011.
In other news, GENZ announced that is has started clinical trials of mipomersen, a lipid-lowering drug. The company plans to start marketing it in the U.S. as early as next year. Buy GENZ under $75.

January 28th
Genzyme Corporation (NASDAQ: GENZ) is teaming up with EXACT Sciences Corporation. Under the agreement, Genzyme has acquired certain intellectual property assets related to the fields of prenatal and reproductive health. Genzyme also bought three million shares of EXACT common stock. This is a good move for the company as it expands into new fields of increasing demand. Continue to buy GENZ under $75.

February 11th
Genzyme Corporation (NASDAQ: GENZ) also announced its earnings for the fourth quarter today. The company's profits came in at $86.7 million, or 31 cents per share, compared with $78.9 million a year ago. And GENZ's revenue increased 12.5% to $1.17 billion. Looking ahead, GENZ expects 2009 revenue of $5.2 billion to $5.4 billion. Continue to buy GENZ under $75.

February 18th to 25th
Buy under $75

March 4th
Genzyme Corporation (NASDAQ: GENZ) shares have traded lower lately. Genzyme's stock plunged on news that production of a version of its drug Myozyme will be delayed due to manufacturing problems. Genzyme has been seeking U.S. regulatory approval of a version of Myozyme called Lumizyme. But there are still some lingering manufacturing issues at its Allston, Mass., plant where Lumizyme is made that is delaying the drug approval by the FDA.
President Obama's healthcare plan will likely allow imports of biogeneric drugs from Europe and possibly even cap prices on high-cost specialty drugs from biotech firms such as Genzyme. Because of this, I think it is time to cut our loss and sell GENZ.

32% loss

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